Insights
As local politics in the United States become increasingly polarized and global tensions continue to rise, several US executives are looking beyond their home country’s border for solutions. Greater security, financial flexibility, and opportunities for business expansion lead the most common reasons. Citizenship by investment (CBI) or acquiring a residency abroad often offer an almost one-stop-shop solution. Be it CBI programs in the Caribbean, Vanuatu, and Turkey, or Golden Visa programs in Europe, they each offer strategic advantages that meet the personal and professional needs of high-net-worth individuals.
Here we delve into the reasons why top executives gravitate toward foreign residencies and citizenship, with a focus on Europe’s popular Golden Visa programs and fast-track CBI options in other regions.
You might think that a second citizenship is simply a vanity investment that comes with a status symbol. For many American Executives, this couldn’t be further from the truth. Citizenship and Residency by investment offer a comprehensive strategy to address crucial business and financial concerns, including wealth preservation, risk diversification, and global mobility.
Why are solutions for these concerns so important?
A second citizenship or alternative residency serves as a form of insurance in times of geopolitical and economic uncertainty. At times of political unrest or unforeseen economic downturn, holding a second citizenship or the right to permanently reside in another country is an easily accessible route toward a safe and stable environment for individuals and families. Living, working, or investing in a foreign country can give executives greater flexibility to manage both personal and business risks.
Managing wealth and planning taxes strategically are crucial considerations for high-net-worth executives. Many of the counties that offer citizenship or residency by investment enable access to favorable tax regimes and incentives. For example, the non-habitual tax regimes in Europe, such as the Malta Global Residence Program or nations in the Caribbean offer significant tax benefits that can significantly reduce global tax liabilities.
Accessing several new regions through a business expansion is a great motivator for executives to increase diversification and spread risk. A second citizenship or residency will open doors to new markets that simplify regulatory hurdles and allow business owners to tap into some of the most rapidly developing economies that they might not have access to from the US. One such economy is Turkey, where the average GDP grew by 5.1% in 2023 (Trading Economics). Additional opportunities include real estate investments and favorable investment conditions for new ventures.
Many executives will be familiar with Golden Visa programs in Europe for the straightforward path to residency in exchange for an investment in the local economy. These residency by investment programs are available in countries such as Portugal, Spain, and Greece where typically a qualifying real estate purchase can lead to a Golden Visa.
Portugal’s Golden Visa program has long been one of the most attractive programs in Europe. While the country used to grant Golden Visas after a real estate purchase, recent changes in legislation have now reduced the investment option to €500,000 into a qualifying bond. The investor needs to hold the bond for at least five years, after which they will receive their initial investment back. A positive average return can be expected after a 6-10 year holding period. If you opt to be a non-habitual resident in Portugal you might enjoy an income tax rate of 0%.
Executives can access Spain’s Golden Visa program through a minimum real estate investment of €500,000. Despite a more complex tax system, many investors opt for this program due to the country’s dynamic economy and its location in Europe. In addition, the program does not require a long physical presence in the country, allowing investors to maintain a US base while holding residency rights in Spain.
The Spanish real estate market is on a robust growth trajectory with 4.9% in 2023 (inflation-adjusted). Therefore, investment in Madrid and Barcelona can offer an attractive financial return.
Greece’s Golden Visa is one of the most cost-effective programs in Europe with a minimum real estate purchase of just €250,000. While the low investment threshold is particularly appealing, the country’s rapid economic recovery and booming tourism sector, have paved the way for great real estate returns.
For US executives, Greece offers a strong foothold in Mediterranean Europe, access to the European Union, and attractive tax incentives for non-domiciled residents.
Citizenship by Investment (CBI) offers investors an opportunity to obtain citizenship of another nation in a much more condensed amount of time compared to a naturalization process. These programs have garnered significant attention in recent years due to the number of strategic benefits they provide, their affordability, and their speed.
Caribbean CBI programs in countries such as Saint Kitts and Nevis,
Grenada, and Antigua and Barbuda are renowned for their trustworthy due diligence and high global standards. Executives have a range of investment options which typically include a government donation, real estate, or bond investments. Many Caribbean countries have highly favorable tax environments, offering citizens no taxes on personal income, capital gains, or inheritance. This can often be the first step in ensuring wealth continuity for high-net-worth individuals.
Vanuatu’s citizenship by investment program remains the fastest in the world, granting citizenship in 1-3 months with a low investment of $130,000. For executives looking for a quick solution and diversifying their global exposure, Vanuatu’s program stands out with its efficiency and location in the Pacific, close to New Zealand and Australia.
Turkey is a country at the crossroads of two continents. Due to this strategic location and an abundance of natural resources, the Turkish citizenship by investment program is increasingly popular. A minimum investment in Real Estate of $400,000 can secure citizenship in a few months. For executives looking to expand their business into emerging markets, Turkey can provide an ideal base for the Middle East and Europe.
For American high-net-worth executives, a second citizenship or residency is about more than personal security, it’s a strategic decision that secures long-term business goals and builds wealth. In our interconnected world, a global footprint is essential for managing diverse portfolios and accessing tax strategies and different regulatory jurisdictions. A second citizenship or permanent residency offers an invaluable lever for legacy planning that secures wealth and prosperity for a high-net-worth executive’s future generations. Many programs are built to accommodate applications for several family members and dependents so that multiple generations can enjoy their advantages.
To have the ability to move seamlessly between jurisdictions provides executives with unparalleled freedom and opportunities to adapt to changing circumstances, and capitalize on new business opportunities. A second citizenship among executives is becoming less of a nice-to-have and more of a must in order to have an agile Plan B in place for uncertain times.
Get in touch to discuss how we can help you with your citizenship or residency by investment goals. One of our investment migration experts will contact you to discuss your case. With over 16 years of combined experience our team has helped hundreds of families achieve freedom.
